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Problems & Best Practices in the Transport Sector in Montenegro

Ana MARAŠSlobodan MILATOVIĆ

Montenegrin Employers Federation

RITS final conference, June 12th 2012, Ljubljana

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Transport in facts (2010, 2011)

- Share in GDP in 2010 – 9,6 % (in 2001 – 12,1%)- Number of companies in 2010 – 1716 (in 2011 – 1456)- Number of employees in 2010 – 17500 (in 2011 – 12000)- Share in total employment – 8,4% (in 2011 – 6,1)- Goods trasported by road – 1 247 000 t in 2011

2 468 000 t – in 2008!!!--------*Source: MONSTAT

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Authorised institutions/bodies

• Ministry of Transport and Maritime Affairs• Directorate for Transport • Maritime Safety Department of Montenegro • Civil Aviation Agency • Railway Transport of Montenegro JSC• Railway Infrastructure of Montenegro JSC• Montecargo Podgorica JSC• Port of Bar JSC• Montenegro Port Authority

Problems and risks • Undeveloped road network• Outdated vehicles and infrastructure condition in the

railway sector • Insufficient airport operation • Low capacity utilisation of the Port of Bar• Weak traffic connection of MNE with the region • Insufficient availability of experienced and trained, highly-

skilled staff* • Insufficient investments in research and development

activities

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Further constraints

• Unfavourable relief (unfavourable topography of the territory, mountain ranges with complicated crossings)

• Great amount of resources needed for modernisation• High number of accidents due to insufficient transport

safety&security• Non-compliance with international standards• Difficulties in finding strategic

partners • Increasing harmful impacts on the

environment

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Strategic goals

Safe and secure transport Quality maintenance of transport infrastructureEfficiency Economic developmentEnvironment Integration in the European Union

--------*Source: Transport Development Strategy of Montenegro

Steps to be taken (1)

- Elimination of bottlenecks at traffic network

- Construction of new and reconstruction of existing terminals for combined transport at railroad stations Bar, Podgorica and Bijelo Polje

- Quality and responsible maintenance of transport infrastructure

- Identification and removal of administrative barriers for fast transport

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Steps to be taken (2) - Liberalisation of transport at international level in order to provide

higher degree of trade efficiency- Planning of seasonal traffic regimes- Modernisation and revitalisation of airports and old ports (Virpazar)

- Use of sustainable modes of transport (ferry boats in Boka Kotorska bay, bicycles)

- Integration into Trans-European Transport Network

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Restructuring: Obstacles• Privatisation plans drafted and reported annually• Council for Privatisation

Obstacles: - Long tender preparation procedures- Low values of tender offers- Lack of interest for tenders*

The most “popular”companies on the lists:

Railway Transport JSC, Railway Infrastructure JSC, Montenegro Airlines JSC , Montecargo JSC etc.

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Restructuring: Good practicesThe Port of Bar

• First restructured in October 2009: Container Terminal and General Cargo” is separated from the Port (JSC) +3 LLCs*

• Second restructuring in April 2011: hotel “Sidro” as LLC, separated from the Port.

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Collective bargaining in transport sector

• Branch Collective Agreement for Road Transport (2004)

• Branch Collective Agreement for Maritime Transport and Port-reloading Services (2004)

Both still in force except for their provisions inconsistent with theprovisions of Labour Law and General Collective Agreement amendedin the meantime.

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What did we do?

MEF document

“Contribution to promotion and development of Montenegrin economy – the analysis of problems and proposal of measures”

Set of measures addressing:

business environment and competition; debtor-creditor relations;

tax, customs and public expenditures; and sector-specific issues.

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Thank you !

Montenegrin Employers Federation - MEFIX Crnogorske brigade no. 11

81 000 Podgorica

T: +382 20 209 250

F: +382 20 209 251

E: upcg@t-com.me

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